City of Scranton, Pennsylvania

Mayor James P. Connors

Population: 77,189
Service Area Population: 77,189

City Contact:
Brian Reap
Councilman
Municipal Building
340 North Washington Ave.
Scranton, PA 18503
570-348-4113

DESCRIPTION OF PARTNERSHIP ARRANGEMENT

The City of Scranton and Borough of Dunmore, joint operators of the Scranton Sewage Authority, entered into a 5-year Partnership agreement with American Anglian (an American Water Works Company), effective October 1999. American Anglian is responsible for the operation, maintenance and management of the City's 20-mgd wastewater treatment plant and 7 pump stations. The city was facing a growing need for infrastructure improvement, and was experiencing a lack of new development and slow growth in its tax base. The Partnership, a sole-source agreement, was required to, and received, approval from EPA under the process adopted by the Agency to implement Executive Order 12803.

ESTIMATED/ACTUAL COST SAVINGS— Capital Upgrades, Consumer Rates, and Fees

The Partnership agreement calls for $20 million in capital improvements over the term of the agreement.

American Anglian agreed to an annual operating cost savings for four years of approximately $500,000, starting in the second year of the Partnership. Consumer rates are not expected to increase over the 5-year Partnership term.

American Anglian agreed to pay an $8 million concession fee to the City of Scranton ($6.7 million), and the Borough of Dunmore ($1.3 million).

LABOR RELATIONS

The service agreement calls for American Anglian to allow the 67 employees to remain Authority employees, but be managed by American Anglian. The Teamsters Union represents the employees, and American Anglian will honor existing union contracts. All non—union employees were offered positions with American Anglian.

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